BE511 Marketing Management: Plan for Sheraton Hotels

Introduction

The structured and sequential marketing plan is the set of activities that are organized for achieving the specific marketing objectives within a proper timeline. The proper marketing plan determines the identification of the customers’ preferences and the performance of the firm that intends to fulfill the business needs (Hollensen 2015). The marketing plan identifies the internal and external market needs based on which the budget and the business functionalities are selected. In addition to this, the structured marketing plan requires developing the fruitful strategies that can strengthen the business position in a desire location (Westwood 2016). The study will thus keep focus on the structured and sequential marketing plan developed by Sheraton Hotel in expanding the business in UK market. The identification of the macro and microenvironment, internal market analysis, and the product segmentation will be incorporated in this study. Depending on the determined marketing objectives, the entire study will be analyzing the acceptability of the services or products on the ground of UK market. The development of the 7P’s of marketing mix will also be analyzed to understand the business potentiality in a foreign market.

Background of the Organisation

Sheraton Hotel provides the best hotel and resort services in more than 70 countries worldwide. The company is much committed towards providing the commendable quality of the accommodation services to the customers in different countries. The company undertakes the repeated and frequent changes for improving the customers’ experiences (Starwoodhotels.com 2017). It is important to notify that the company has been suggesting some of the successful dealing in terms of the merger and acquisition, strategic alliance, and effective partnerships with the other internationalized and local hotels. However, currently, the company has been trying to expand the business market in UK by strengthening the brand identity (Rosenberg Hansen and Ferlie 2016). The marketing plan is thus developed to identify the internal and external business potentiality for achieving this goal. The recognition of the underlying strengths and weakness will be helpful to understand the possibilities of global expansion in UK market. The identification of the macro and microenvironment is presented further.

PESTLE Analysis

PESTLE is a fruitful strategic tool that helps in understanding the external market in which the business operates in a country. PESTLE is generally signifies the influences of political, economical, social, technological, legal and environmental factors on business. The recognition of the influences of these factors would provide the insightful ideas about the business essentials for expanding in the global market. The analysis of the external market is presented further:

 Table 1: PESTLE Analysis

(Source: Ho 2014)

Porter’s Five Forces

Michael Porter introduced the marketing analytical tool that analyses the external market for the business. This analytical tool includes five dimensions that are needed to be considered for expanding the business market in a particular country. The fiver forces analysis of Sheraton Hotel in UK is presented below:

Figure 1: Porter’s Five Forces

(Source: E. Dobbs 2014)

Bargaining Power of the Buyer (High)

The development of the hotel industry in UK market is contributing to the economic structure of the country. The demands of the customers to derive the commendable experience in the hotel are continuously increasing (Rosenberg Hansen and Ferlie 2016). Hence, the bargaining power of the customers is considerably higher in UK.

Bargaining Power of Suppliers (Low)

The development of the hotel industry in UK market is quite remarkable. Therefore, the availability of the suppliers is also moderate. Sheraton Hotel will receive the option for selecting the suppliers to offer best services to the customers. Hence, the bargaining power of the suppliers is considerably low.

Threats of Substitutes (High)

The emergence of the restaurants chains, roadside café, and small places for dining or having lunch is becoming much in demands. Moreover, the frequently changing demands of the customers are widening the risks of the substitutes and replacements. Hence, the threats of the substitutes are quite higher in UK.

Threats of New Entrants (Low)

Establishment of the hotel in this widely based hotel industry is concerned with several issues with the legislations, political and capitalism factors. Hence, the threats of new entrants are quite lower. Sheraton Hotel can avail the opportunity by investing the proper capital to establish the business entity.

Rivalry (High)

The direct competition with Marriot and Hilton Hotel is quite effective for Sheraton Hotel in establishing business entity in UK market (Vignali 2015). The advancements of the technological facilities and the extended value added services are required taking into consideration for competing over this competitive scenario. The market rivalry is thus quite higher for the hotel.

Internal Market Analysis

The value chain analysis of Sheraton Hotel provides the insightful ideas about the internal market. The core value of the business is mainly concentrating on three major factors.

Figure 2: Value Chain Analysis

In order to maintain the value chain, the company has been focusing on the following core competencies.

• Going to the extra step by undertaking suitable actions that are efficiently building long-term loyalty and connections
• Building the global entity by working in the international fields and by developing the teamwork
• Concentrating on the right thing by maintaining the proper judgments and associating the communities as well as societies

Developing these competencies are the major focus of the business to strengthen the customer base.

Internal market analysis presents the identification of the potential strengths and weakness of the organisation to ensure the capability of conducting business in the global market. Similarly, it recognizes the market threats and opportunities that may affect the business functionalities in a significant way. Presenting the SWOT analysis will be helpful enough in identifying the business potentiality to establish the entity in UK market.

Strengths

• The brand identity of Sheraton Hotel is quite commendable.
• The company holds the successful history of strategic acquisition process.
• The company has developed the business entity in more than 70 countries worldwide.
• The company has been undertaking the remarkable marketing campaigns that are attracting more customers. In fact, it is spreading the brand awareness among the customer worldwide in a commendable way.

Weaknesses

• The product or service specifications as well as the innovative features are much easier for the competitors to replicate.
• The continuous expansion of the business in different countries has the higher chances of diluting the brand identity.

Opportunities

• The luxurious and sophisticated demands of the UK customers are ensuring the huge opportunity of business development.
• The company can avail the opportunity to develop the luxurious services and products as well as the sophisticated promotional process in UK market (Shiri, Anvari and Soltani 2015).
• The current growth in the hotel industry is quite beneficial for the company to ensure the sustainable position in UK market.
• Availability of the advanced technologies will be helpful enough in improving the business mechanisms.

Threats

• The continuous pressures from the global competitors are quite threatening for the sustainability of the business.
• Lack of reinvention can lead the company towards the loss of grounds in UK market.
• The industry is largely depended on the global economic conditions.

Marketing Objectives of Sheraton Hotel

Recognition of the external and internal market specifies the formulation of the specific market objectives. These market objectives are:

• To critically assess the frequent improvement of the hospitality services in UK market
• To identify the specific needs and demands of the people in UK
• To ensure the growth of 10% market share in next one year

 
Table 2: SMART Objectives

(Source: Created by Author)

STP Analysis

The segmentation, targeting and positioning of Sheraton Hotel is presented below:

Segment

The company provides the leisure and accommodation services to the business travelers. The quality care of the customers is necessary for the company to gain the string customer base.

Targeting

The company targets the vacationers, local and international tourists, business travellers, and the families for visiting the hotel and resort.

Positioning

The effective and remarkable in-class customer services are beneficial in attracting more customers to use the hotel services (Lehr 2015). Even it is necessary to ensure the demands of the UK customers to develop the business potentiality.

Marketing Mix (7P’s of Marketing)

The marketing mix contains the different components of business markets that create the significant impact on the business position in a location. The 7P’s of marketing mix elements are described further:

Product

The company ensures the high quality experiences to the customers by providing them the luxurious hotel and resort services. Even in UK, the demands of the sophisticated holiday stay are also persuading the customers to develop the business products and services (Singh 2013). The focus on the consumers; preferences is thus essential for the business to bring more innovations and strengthen the customers base in UK market.

Place

Sheraton Hotel needs to identify the distant place in UK to establish the hotel and resorts. Therefore, people can reach there for spending the vacation time (Grünig and Morschett 2017). The identification of the demographic location is necessary for the company to expand the business in UK market.

Price

The costs of the products and services are needed to be associated with the greater value. Hence, the company needs to concentrate on the proper pricing strategy to make the hotel services affordable to the target customers.

Promotion

Due to development in the technological and networking access, the company can promote the business in an attractive way (Siguaw and Simpson 2015). The luxurious demonstration of the products and services would be beneficial in attracting the people in a significant manner. Hence, the company can avail the accessibility of developing the promotional activities in UK.

Processes

The process determines the distribution or delivery aspects of the services. It is a primary responsibility of the company to ensure that the customers are receiving the service facilities in timely manner (Luo, Roach and Jiratchot 2016). The adjustments of the processes would be thus beneficial to strengthen the customer base.

Physical Evidence

Providing the essential physical elements contributes the customers to be more reliable towards the company. Once the customers are happy with the service familiarities, it will sustain the business position for longer time. Hence, the company can provide the brochures, leaflets, or display through the social media sites to ensure the existence of the business.

People

Managing the target market is necessary to ensure the sustainable development of the business. It is important for the Sheraton Hotel to identify the basic needs and demands of the potential customers. The set of target market is needed to be prioritized more specifically.

Conclusion

The study identifies the external and internal market of Sheraton Hotel, which is intending to expand the business in UK. The study reveals that the company needs to conduct the adequate market research for identifying the market potentiality for long run. Overcoming the barriers in the new country, the company would be able to develop the sustainable pposition along with a strengthened customer base.

References

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Starwoodhotels.com, 2017. Sheraton Hotels & Resorts | Family Hotels, Resort Hotels | Starwood Hotels. [online] Starwoodhotels.com. Available at: <https://www.starwoodhotels.com/sheraton/index.html?language=en_US> [Accessed 13 Apr. 2017].

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